HMRC Records of savings interest and self-assessment

Rheumatoid

Wheres_My_Cashback said:

Rheumatoid said:

Is it still possible to view what savings interest details HMRC hold? I can't find it anywhere.

Also, I now need to register for self-assessment. Do I need to enter all of my savings interest details or is it populated from their records and I just need to check?

Thanks

HMRC, until 2-3 years ago had a Beta site where you could view your reported savings accounts and update online with interest accrued, expected and advise them of closed accounts. It didn't work alongside their other platforms or operating procedures so it was removed.
Since the change to reporting in 2016 HMRC have been in a mess with the new system of reporting as they still use previous tax years interest payments to estimate the following year and then issue tax codes accordingly. It took a while for me to discover that even when you advised them of interest earnt, closed accounts and gave them closure dates, the system would then put those accounts back as live if a Bank/BS reported annual interest after this and sometimes they don't report this up to 10 months after the tax year finishes.

Thanks, was beginning to think I was going nuts

noh

wmb194 said:

noh said:

masonic said:

noh said:

masonic said:

ScarletBea said:

FatherTireseus said:

Plus, I do hold a few savings products through Hargreaves Lansdown Active Savings and they don't give you an account number in any case.

@FatherTireseus, yesterday I discovered that HL doesn't send Active Savings tax information to HMRC, unlike banks and building societies, and we have to send it ourselves (for PAYE, not self-assessment).
I've always had to correct my info with them and managed to do it over the phone in the past, but this time I got a "computer says no" person (because there's no sort code/account number) so I had to print out the HL tax certificate and send a letter with everything to HMRC... Really annoying!
They were trying to refund me money and I kept saying that was wrong haha (I always do the tax calculations myself, I can't remember a single year that they got it right first time...), until I realised that the gap was exactly the HL value.

The underlying savings institutions who pay the interest should be responsible for this, unless they are not provided with information about the individual whose money they hold (unlikely with KYC requirements).

Most of the deposits are made into the underlying savings institutions by a HL nominee that holds the money on trust for the individual savers.
Only HL know the details of each individual.
The KYC requirements are dealt with by HL. That way there is much reduced admin costs for the savings provider enabling them to pay their commission to HL

Thanks, so works differently than say Raisin, where the customer has a direct relationship with the provider. It does then create a bit of an issue for tax reporting, and a user who isn't careful could inadvertently end up with underpaid tax.

I would have thought that HL would report the interest income to HMRC.
After all they report dividends and dividends that are classed as interest received by investors that hold stocks and shares in a GIA which is also a nominee account.

Are you certain? I thought it was a desire but it hasn't been implemented yet.

This from an FT article (08/21): [On giving every taxpayer a 'digital' HMRC account] "The OTS supports the scheme and recommends using the account to make visible existing third party data shared with HMRC and suggests new data sources like dividend and investment income, which are not currently shared by third parties, could also be included."

https://www.ft.com/taxcheat

Thanks for that. I just assumed that they did report dividend income.
That explains why they also don't report interest received in the Active Savings account.

isasmurf

Wheres_My_Cashback said:

Rheumatoid said:

Is it still possible to view what savings interest details HMRC hold? I can't find it anywhere.

Also, I now need to register for self-assessment. Do I need to enter all of my savings interest details or is it populated from their records and I just need to check?

Thanks

HMRC, until 2-3 years ago had a Beta site where you could view your reported savings accounts and update online with interest accrued, expected and advise them of closed accounts. It didn't work alongside their other platforms or operating procedures so it was removed.

I don't know what you mean by It didn't work alongside their other platforms or operating procedures so it was removed. It was part of the personal tax account and tax code calculation. 

For those that want to go back and reminisce, this is the thread discussing it. 

dosh37

I am interested in this thread because I have several savings accounts and open/close and move cash between them many times during the tax year as interest rates change.

Savers are expected to somehow keep track of how much (paltry) interest we have earned from each account and report this to HMRC via self assessment returns. In reality this is almost impossible, especially now that many online savings organisations prevent you from even logging in to obtain statements or tax liabllity reports after you close accounts. It used to be that savers were given a tax statement through the post after closing an account. That no longer happens. I have tried creating Excel spreadsheets in an attempt to keep track of online accounts, but it's pretty hopless.

I have reached the conclusion that if I find it impossible to keep track, then HMRC will also find it impossible. They are as incompetent at understanding arcane tax rules as the rest of us.

I have never understood why it is tax payers responsibility to tell HMRC how much we 'think' we owe if they already know? If tax payers make a mistake their self assesment returns, they can end up being fined. It only works one way. It's like going to a supermarket, filling your trolley and having the cashier ask you how much you think you owe. If you get it wrong then you get a fine.

wmb194

dosh37 said:

I am interested in this thread because I have several savings accounts and open/close and move cash between them many times during the tax year as interest rates change.

Savers are expected to somehow keep track of how much (paltry) interest we have earned from each account and report this to HMRC via self assessment returns. In reality this is almost impossible, especially now that many online savings organisations prevent you from even logging in to obtain statements or tax liabllity reports after you close accounts. It used to be that savers were given a tax statement through the post after closing an account. That no longer happens. I have tried creating Excel spreadsheets in an attempt to keep track of online accounts, but it's pretty hopless.

I have reached the conclusion that if I find it impossible to keep track, then HMRC will also find it impossible. They are as incompetent at understanding arcane tax rules as the rest of us.

I have never understood why it is tax payers responsibility to tell HMRC how much we 'think' we owe if they already know? If tax payers make a mistake their self assesment returns, they can end up being fined. It only works one way. It's like going to a supemarket, filling your trolley and having the cashier ask you how much you think you owe. If you get it wrong then you get a fine.

It isn't impossible, it's easy. You just keep track as you go along. I note everything in MS Money and then use it to create tax reports. I'm not sure why your why your Excel solution has failed.

HMRC's data are patchy and not always timely, especially if you want to submit your tax return soon after the end of the tax year.

dosh37

wmb194 said:

Zuzi said:

This may be a dumb question, but how do you know how much interest you earned, especially with multiple providers and moving savings around during the year?

Easy, you look at your statement and make a note of it. I use MS Money to keep track and produce reports for me.

I disagree! Many online savings providers prevent you from logging in after closing an account. Unless you save the tax information beforehand then the data is no longer available. All savings providers should send a closing tax statement THROUGH THE POST on account closure.

dosh37

frugalmacdugal said:

Hi,

most providers give an annual interest statement at end of tax year, either paper or online.

'Most' is not good enough. It should be mandatory - especially since savers can end up being fined for getting it wrong.

wmb194

dosh37 said:

wmb194 said:

Zuzi said:

This may be a dumb question, but how do you know how much interest you earned, especially with multiple providers and moving savings around during the year?

Easy, you look at your statement and make a note of it. I use MS Money to keep track and produce reports for me.

I disagree! Many online savings providers prevent you from logging in after closing an account. Unless you save the tax information beforehand then the data is no longer available. All savings providers should send a closing tax statement THROUGH THE POST on account closure.

So log in an make a note *before* you close the account. We're only talking about cash savings here, it's not rocket science. It becomes far, far more complicated when you need to keep track of stock market investments in foreign currencies.

masonic

dosh37 said:

wmb194 said:

Zuzi said:

This may be a dumb question, but how do you know how much interest you earned, especially with multiple providers and moving savings around during the year?

Easy, you look at your statement and make a note of it. I use MS Money to keep track and produce reports for me.

I disagree! Many online savings providers prevent you from logging in after closing an account. Unless you save the tax information beforehand then the data is no longer available. All savings providers should send a closing tax statement THROUGH THE POST on account closure.

The money has to end up somewhere, so you should be able to account for it among your remaining bank accounts. Providers will issue an interest summary on request, but few send these out automatically because most people aren't on self-assessment. Those who are do have a responsibility to keep their own records as it is the taxpayer's responsibility to ensure the details they provide are accurate.

isasmurf

dosh37 said:

frugalmacdugal said:

Hi,

most providers give an annual interest statement at end of tax year, either paper or online.

'Most' is not good enough. It should be mandatory - especially since savers can end up being fined for getting it wrong.

It is mandatory when it is requested. It stopped being mandatory to provide everyone with a certificate because the majority of people with accounts don't require it.